Five years ago, I launched a gold trading signal service on a whim. I was bored during lockdown, sitting in my Singapore flat, staring at charts for 14 hours a day. My wife said I needed a hobby. I said I needed more screen time. We were both wrong.
Turns out, running a signal service taught me more about trading psychology than the previous 5 years of solo trading ever did. It forced me to confront my own decision-making process — because suddenly I had to explain it to other people, in real time, with real money on the line.
Here is the honest truth: most trading signals are garbage. And the ones that are not require more discipline to follow than most people have. I learned this the hard way — by watching thousands of signal subscribers make the exact same mistakes, over and over again.
How I Started My Signal Service
It wasn't planned. I was posting trade ideas on Telegram for a few friends. One friend shared the link. Then another. Suddenly I had 300 people watching my every entry. No pressure, right?
The early days were rough. I'd call a buy on XAUUSD at $1,950, it'd drop to $1,942, and my Telegram would explode: "Lin are you still in??" "Should I cut losses??" "Is this signal still valid??"
I realized then that a signal is only as good as the person's ability to follow it. Give the same signal to 100 traders and you'll get 100 different results, because everyone exits at different levels, moves stop losses around, and gets emotional at different points.
The 3 Types of "Signals" You Should Ignore
After 5 years in this space, I can spot the garbage from a mile away:
1. The "Guaranteed Profit" Hype Machine
If someone promises you 90% win rate, block them immediately. I average around 65-70% on my setups, and that's after a decade of trading. Anyone claiming higher is either lying or hasn't been trading long enough to hit a real drawdown. The market humbles everyone eventually.
2. The Vague Entry, No Exit
"Buy gold at market" — great, what's my stop? What's my target? What's my risk-reward? Without these three numbers, it's not a signal. It's a guess. I learned this the hard way in 2018 when I followed a "signal" from a popular Twitter account and watched my position drop 80 pips before I finally cut losses. No stop loss was provided, and I was too inexperienced to set my own.
3. The "Double or Nothing" Revenge Signal
After a losing trade, some signal providers double down on the next one. This is not analysis. This is gambling. I have seen accounts blown up by following signal providers who chase losses.
What Actually Makes a Good Signal?
After 5 years, here is my framework:
- Clear entry zone — not an exact price, a zone with logic behind it
- Stop loss — if there's no stop, it's not a signal
- Take profit levels — at least 2 targets, because the market rarely hits exactly one
- Risk-reward ratio — minimum 1:2, preferably 1:3
- Timeframe context — is this a scalp, day trade, or swing?
Everything else is noise. If a signal doesn't have these 5 elements, move on.
The Most Important Thing I've Learned
Running a signal service taught me that signals don't make you a profitable trader — discipline does. The best signal in the world means nothing if you:
- Take the entry but move your stop loss when price gets close
- Close early because you're scared, missing the full move
- Skip the signal because "it doesn't feel right" but take the next one that fits your bias
- Double the position size because this time you're "really sure"
I have seen subscribers take my exact signal and lose money because they couldn't sit through a 15-pip drawdown before price hit their target. That's not the signal's fault. That's a discipline problem.
Signals as a Tool, Not a Crutch
Here's my honest advice: use signals as a starting point for your own analysis. When you see a signal, ask yourself:
- Does the entry zone make sense based on the chart?
- Do I agree with the direction?
- Does the risk-reward ratio fit my trading style?
If the answer is yes to all three, take the trade. If not, skip it. Blindly following signals will never make you a better trader. But using signals to cross-check your own analysis? That's a different story.
Why I Still Share Signals
I still share trades on this site because I believe in transparency. Every signal on xaulx.com includes my entry, stop, targets, and the reasoning behind it. You can see the results, good and bad. I don't hide my losses. Because the day I start hiding losses is the day I stop trusting my own process.
And if there's one thing 10 years of trading has taught me: trust the process, not the outcome of a single trade.
--- Lin